Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Amendments to the Codes of Arbitration Procedure To Remove the Page Limit on Statements of Claim Filed Through the Online Arbitration Claim Filing System, 6537-6539 [E8-1960]
Download as PDF
<![CDATA[
Federal Register / Vol. 73, No. 23 / Monday, February 4, 2008 / Notices
consequences of any accident previously
evaluated are not significantly increased.
Therefore, the proposed changes do not
involve a significant increase in the
probability or consequences of an accident
previously evaluated.
SECURITIES AND EXCHANGE
COMMISSION
The proposed changes revise the
Completion Times for restoring an inoperable
containment isolation valve (or isolating the
affected penetration) within the scope of
Topical Report BAW–2461–A, ‘‘RiskInformed Justification for Containment
Isolation Valve Allowed Outage Time
Change.’’ The proposed changes do not
change the design, configuration, or method
of operation of the plant. The proposed
changes do not involve a physical alteration
of the plant (no new or different kind of
equipment will be installed). Therefore, the
proposed changes do not create the
possibility of a new or different kind of
accident from any accident previously
evaluated.
Criterion 3—The Proposed Change Does Not
Involve a Significant Reduction in the Margin
of Safety
The proposed changes revise the
Completion Times for restoring an inoperable
containment isolation valve (or isolating the
affected penetration) within the scope of
Topical Report BAW–2461–A, ‘‘RiskInformed Justification for Containment
Isolation Valve Allowed Outage Time
Change.’’ In order to evaluate the proposed
Completion Time extensions, a probabilistic
risk evaluation was performed as
documented in Topical Report BAW–2461–
A. The risk evaluation concluded that the
proposed increase in the Completion Times
does not result in an unacceptable
incremental conditional core damage
probability or incremental conditional large
early release probability according to the
guidelines of Regulatory Guide 1.177.
Therefore, the proposed changes do not
involve a significant reduction in a margin of
safety.
ebenthall on PRODPC61 with NOTICES
Based upon the reasoning presented
above and the previous discussion of
the amendment request, the requested
change does not involve a significant
hazards consideration as set forth in 10
CFR 50.92(c).
Dated at Rockville, Maryland, this 28th day
of January, 2008.
For the Nuclear Regulatory Commission.
Gerald Waig,
Acting Chief, Technical Specifications
Branch, Division of Inspection & Regional
Support, Office of Nuclear Reactor
Regulation.
[FR Doc. E8–1943 Filed 2–1–08; 8:45 am]
VerDate Aug<31>2005
15:15 Feb 01, 2008
Jkt 214001
12302. Filing an Initial Statement of
Claim
[Release No. 34–57225; File No. SR–FINRA–
2007–042]
Criterion 2—The Proposed Change Does Not
Create the Possibility of a New or Different
Kind of Accident From Any Previously
Evaluated
BILLING CODE 7590–01–P
6537
(a) Filing Claim with the Director
(1) To initiate an arbitration, a
claimant must file the following with
the Director:
• Signed and dated Uniform
Submission Agreement; and
• A statement of claim specifying the
relevant facts and remedies requested.
The claimant may include any
additional documents supporting the
statement of claim.
(2) A claimant may use the online
claim notification and filing procedure
to complete part of the arbitration claim
filing process through the Internet. To
commence this process, a claimant may
complete a Claim Information Form that
can be accessed through [https://
www.nasd.com] https://www.finra.org. In
completing the Claim Information Form,
the claimant may attach an electronic
version of the statement of claim, and
any additional documents supporting
the statement of claim, to the form[,
provided it does not exceed 50 pages].
Once this online form has been
completed, [an NASD] a FINRA Dispute
Resolution Tracking Form will be
generated and displayed for the
claimant to reproduce as necessary. The
claimant shall then file with the
Director the rest of the materials
required in subparagraph (1) of the rule,
along with a hard copy of the [NASD]
FINRA Dispute Resolution Tracking
Form.
(b)–(d) No change.
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Amendments
to the Codes of Arbitration Procedure
To Remove the Page Limit on
Statements of Claim Filed Through the
Online Arbitration Claim Filing System
January 29, 2008.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on December
27, 2007, Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) (f/k/a
National Association of Securities
Dealers, Inc. (‘‘NASD’’)) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
substantially prepared by FINRA.
FINRA has designated the proposed rule
change as concerned solely with the
administration of the self-regulatory
organization under section
19(b)(3)(A)(iii) of the Act 3 and Rule
19b–4(f)(3) thereunder,4 which renders
the proposal effective upon receipt of
this filing by the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
FINRA is proposing to amend Rule
12302 of the Code of Arbitration
Procedure for Customer Disputes
(‘‘Customer Code’’) and Rule 13302 of
the Code of Arbitration Procedure for
Industry Disputes (‘‘Industry Code’’) to
remove the 50-page limit on Statements
of Claim filed through the Online
Arbitration Claim Filing System (‘‘the
System’’), to allow parties to submit
exhibits to Statements of Claim through
the System, and to reflect the new
FINRA name.5 Below is the text of the
proposed rule change. Proposed new
language is in italics; proposed
deletions are in brackets.
*
*
*
*
*
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(3).
5 Specifically, FINRA is updating its Internet
address and the title of the Tracking Form generated
by the System.
2 17
PO 00000
Frm 00085
Fmt 4703
Sfmt 4703
13302. Filing an Initial Statement of
Claim
(a) Filing Claim with the Director
(1) To initiate an arbitration, a
claimant must file the following with
the Director:
• Signed and dated Uniform
Submission Agreement; and
• A statement of claim specifying the
relevant facts and remedies requested.
The claimant may include any
additional documents supporting the
statement of claim.
(2) A claimant may use the online
claim notification and filing procedure
to complete part of the arbitration claim
filing process through the Internet. To
commence this process, a claimant may
complete a Claim Information Form that
can be accessed through [https://
www.nasd.com] https://www.finra.org. In
completing the Claim Information Form,
the claimant may attach an electronic
version of the statement of claim, and
any additional documents supporting
the statement of claim, to the form[,
provided it does not exceed 50 pages].
Once this online form has been
E:\FR\FM\04FEN1.SGM
04FEN1
6538
Federal Register / Vol. 73, No. 23 / Monday, February 4, 2008 / Notices
completed, [an NASD] a FINRA Dispute
Resolution Tracking Form will be
generated and displayed for the
claimant to reproduce as necessary. The
claimant shall then file with the
Director the rest of the materials
required in subparagraph (1) of the rule,
along with a hard copy of the [NASD]
FINRA Dispute Resolution Tracking
Form.
(b)–(d) No change.
*
*
*
*
*
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
FINRA included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. FINRA has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
ebenthall on PRODPC61 with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
FINRA is amending its Customer
Code and Industry Code to remove the
50-page limit on Statements of Claim
filed through the System, to allow
parties to submit exhibits to Statements
of Claim through the System, and to
reflect the new FINRA name. The
proposed rule change is intended to
encourage more claimants to use online
filing. The System will not have any
limitation on the number of pages
submitted so long as they are submitted
as a single document.
To begin an arbitration, a claimant
submits a signed and dated Uniform
Submission Agreement, a Statement of
Claim specifying the relevant facts and
remedies requested, any exhibits
supporting the Statement of Claim, and
the required fees. When a claim is filed
in hard copy, the claimant is required to
submit sufficient copies of the
Statement of Claim for the forum, each
arbitrator and each other party.
Since August 2004, FINRA has
allowed claimants to file an electronic
version of the Statement of Claim so
long as the submission does not exceed
50 pages. The Statement of Claim may
include exhibits if they are part of the
same document and the total number of
pages is no more than 50. Claimants
who file online also complete an online
Claim Information Form containing
VerDate Aug<31>2005
15:15 Feb 01, 2008
Jkt 214001
details about the names and addresses
of the parties and their counsel, the
issues in controversy, and so forth. Once
the Claim Information Form is
completed, a Dispute Resolution
Tracking Form is generated by the
System. Claimants then mail in a signed
and dated Uniform Submission
Agreement, a copy of the Dispute
Resolution Tracking Form, the required
fees, and any exhibits. The case is
deemed to be filed when all such
materials are received.
With electronically filed claims,
FINRA staff prints the required copies
for the arbitrators and the other parties.
The 50-page limit was originally
imposed to ensure that FINRA had
sufficient resources to process electronic
claims efficiently. Having gained
experience with electronic filing, FINRA
is prepared to process efficiently the
additional volume associated with
longer Statements of Claim and exhibits.
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of section 15A(b)(6) of the Act,6 which
requires, among other things, that
FINRA rules must be designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, and, in
general, to protect investors and the
public interest. By removing the page
limitation on submissions through the
System, the proposed rule change will
provide investors, and other claimants,
with expanded access to the System and
will make claim processing more
efficient.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
FINRA does not believe that the
proposed rule change will result in any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to section 19(b)(3)(A)
of the Act 7 and paragraph (f)(3) of Rule
19b–4 thereunder 8 because it is
6 15
U.S.C. 78o–3(b)(6).
U.S.C. 78s(b)(3)(A).
8 17 CFR 240.19b–4(f)(3).
7 15
PO 00000
Frm 00086
Fmt 4703
Sfmt 4703
concerned solely with the
administration of FINRA.9 At any time
within 60 days of the filing of the
proposed rule change, the Commission
may summarily abrogate such rule
change if it appears to the Commission
that such action is necessary or
appropriate in the public interest, for
the protection of investors, or otherwise
in furtherance of the purposes of the
Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–FINRA–2007–042 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–FINRA–2007–042. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
9 The applicability of Rule 19b–4(f)(3) is limited
to matters concerned solely with the administration
of a self-regulatory organization. Because this
narrowly tailored rule change is limited to relaxing
administrative restrictions on the length of
documents solely for claims processed online and
updating FINRA’s name and Internet address for
purposes of these claims, it meets the Rule 19b–
4(f)(3) standard.
E:\FR\FM\04FEN1.SGM
04FEN1
Federal Register / Vol. 73, No. 23 / Monday, February 4, 2008 / Notices
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of such filing also will be
available for inspection and copying at
the principal office of FINRA. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–FINRA–2007–042 and
should be submitted on or before
February 25, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–1960 Filed 2–1–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57216; File No. SR–NYSE–
2008–06]
22, 2008, for shares executed on the new
NYSE MatchPointSM (‘‘NYSE
MatchPoint’’ or ‘‘MatchPoint’’) 5 system.
The Exchange will charge each Member
Organization $.0015 per share executed
on the MatchPoint system, with the
exception of MatchPoint executions that
are effectuated through an optional
‘‘internal match’’ process. The text of
the proposed rule change is available at
the Exchange, the Commission’s Public
Reference Room, and https://
www.nyse.com.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
NYSE included statements concerning
the purpose of, and basis for, the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. The NYSE has
prepared summaries, set forth in
sections A, B, and C below, of the most
significant aspects of such statements.
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Implement
Transaction Fees for NYSE MatchPoint
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
January 28, 2008.
The Exchange proposes to implement
an equity transaction fee for executions
on the NYSE MatchPoint system to take
effect with the scheduled launch of
MatchPoint on January 22, 2008. The
MatchPoint system is an electronic
facility of the Exchange that matches
aggregated orders at predetermined,
one-minute sessions throughout regular
hours and after hours of the Exchange.
The proposed transactional fee of $.0015
per executed share, for single and
portfolio orders, will be charged to both
the buyer(s) and seller(s) of the executed
shares, with the exception of
MatchPoint executions that are
effectuated through an optional
‘‘internal match’’ process.6 More
specifically, when the same user enters
ebenthall on PRODPC61 with NOTICES
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on January
22, 2008, the New York Stock Exchange
LLC (‘‘NYSE’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the NYSE. The
NYSE has designated this proposal as
one establishing or changing a due, fee,
or other charge imposed by the NYSE
under section 19(b)(3)(A)(ii) of the Act,3
and Rule 19b–4(f)(2) thereunder,4 which
renders the proposal effective upon
filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
NYSE proposes to implement an
equity transaction fee effective January
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
1 15
VerDate Aug<31>2005
15:15 Feb 01, 2008
Jkt 214001
1. Purpose
5 See Securities Exchange Act Release No. 57058
(December 28, 2007), 73 FR 903 (January 4, 2008)
(SR–NYSE–2007–102).
6 See NYSE Rule 1500 (NYSE MatchPointSM),
subparagraph (b)(2)(D): ‘‘’NYSE MatchPoint Internal
Match Constraint’ or ’internal match constraint’
shall mean an optional order constraint that limits
the execution of portfolios and single orders by
directing the portfolio and single orders to first
trade with other portfolios or single orders of the
same User before trading with other orders in a
particular matching session. If, after an internal
match occurs and residual orders remain, the
residual orders will be available to trade with all
other orders. These constraints are only active for
a single matching session.’’
PO 00000
Frm 00087
Fmt 4703
Sfmt 4703
6539
different orders into MatchPoint for
internal matching purposes under the
same mnemonic and for the same
matching session, any resulting
executions will not be subject to this
transaction fee.7 Only NYSE members,
member organizations and sponsoring
member organizations will be charged
this transaction fee. Transaction fees for
executions of orders entered by
sponsored participants (who are nonmembers) will be charged to the
sponsoring member organization.
The following examples will
demonstrate how the proposed
MatchPoint transactional fee will be
charged:
Example 1: User A enters a buy order into
MatchPoint for 1,000 shares of XYZ security
and designates the order for the 11 a.m.
matching session. User B enters a sell order
into MatchPoint for 1,000 shares of XYZ
security and designates the order for the 11
a.m. matching session. During the 11 a.m.
matching session, User A’s buy order for
1,000 shares of XYZ security and User B’s
sell order for 1,000 shares of XYZ security
match and execute. User A is charged $.0015
per executed share (1,000 shares × $.0015 =
$1.50). User B is also charged $.0015 per
executed share (1,000 shares × $.0015 =
$1.50).
Example 2: User A enters a portfolio order
into MatchPoint for a customer to buy 1,000
shares of XYZ security with an internal
match constraint under the mnemonic ‘‘Q’’
for the 2 p.m. matching session. User A then
enters another portfolio order into
MatchPoint for a second customer to sell
1,000 shares of XYZ security with an internal
match constraint under the same mnemonic
(‘‘Q’’) for the 2 p.m. matching session. During
the 2 p.m. matching session, the above
described portfolio orders entered by User A
internally match and execute. Thus, User A’s
customers both receive executions of 1,000
shares of XYZ security, but no transaction fee
is charged to A for these internally matched
executions.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of section 6 8 of the Act 9
in general, and section 6(b)(4) of the
Act 10 in particular, in that it is designed
to provide for the equitable allocation of
reasonable dues, fees and other charges
among its members and other persons
using its facilities. Specifically, the
proposed transaction fee is reasonable
7 Because orders are entered by a ‘‘mnemonic’’
(i.e., member identifier and/or account identifier)
and because mnemonics are categorized as either
‘‘agency’’ or ‘‘proprietary,’’ agency and proprietary
orders cannot be entered under the same
mnemonic. Thus, agency and proprietary orders
cannot match and execute against each other in an
internal match.
8 15 U.S.C. 78f.
9 15 U.S.C. 78a.
10 15 U.S.C. 78f(b)(4).
E:\FR\FM\04FEN1.SGM
04FEN1
]]>Agencies
[Federal Register Volume 73, Number 23 (Monday, February 4, 2008)]
[Notices]
[Pages 6537-6539]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-1960]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57225; File No. SR-FINRA-2007-042]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of
Proposed Rule Change Relating to Amendments to the Codes of Arbitration
Procedure To Remove the Page Limit on Statements of Claim Filed Through
the Online Arbitration Claim Filing System
January 29, 2008.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on December 27, 2007, Financial Industry Regulatory Authority, Inc.
(``FINRA'') (f/k/a National Association of Securities Dealers, Inc.
(``NASD'')) filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been substantially prepared by FINRA.
FINRA has designated the proposed rule change as concerned solely with
the administration of the self-regulatory organization under section
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(3) thereunder,\4\
which renders the proposal effective upon receipt of this filing by the
Commission. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(3).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
FINRA is proposing to amend Rule 12302 of the Code of Arbitration
Procedure for Customer Disputes (``Customer Code'') and Rule 13302 of
the Code of Arbitration Procedure for Industry Disputes (``Industry
Code'') to remove the 50-page limit on Statements of Claim filed
through the Online Arbitration Claim Filing System (``the System''), to
allow parties to submit exhibits to Statements of Claim through the
System, and to reflect the new FINRA name.\5\ Below is the text of the
proposed rule change. Proposed new language is in italics; proposed
deletions are in brackets.
---------------------------------------------------------------------------
\5\ Specifically, FINRA is updating its Internet address and the
title of the Tracking Form generated by the System.
---------------------------------------------------------------------------
* * * * *
12302. Filing an Initial Statement of Claim
(a) Filing Claim with the Director
(1) To initiate an arbitration, a claimant must file the following
with the Director:
Signed and dated Uniform Submission Agreement; and
A statement of claim specifying the relevant facts and
remedies requested.
The claimant may include any additional documents supporting the
statement of claim.
(2) A claimant may use the online claim notification and filing
procedure to complete part of the arbitration claim filing process
through the Internet. To commence this process, a claimant may complete
a Claim Information Form that can be accessed through [https://
www.nasd.com] https://www.finra.org. In completing the Claim Information
Form, the claimant may attach an electronic version of the statement of
claim, and any additional documents supporting the statement of claim,
to the form[, provided it does not exceed 50 pages]. Once this online
form has been completed, [an NASD] a FINRA Dispute Resolution Tracking
Form will be generated and displayed for the claimant to reproduce as
necessary. The claimant shall then file with the Director the rest of
the materials required in subparagraph (1) of the rule, along with a
hard copy of the [NASD] FINRA Dispute Resolution Tracking Form.
(b)-(d) No change.
13302. Filing an Initial Statement of Claim
(a) Filing Claim with the Director
(1) To initiate an arbitration, a claimant must file the following
with the Director:
Signed and dated Uniform Submission Agreement; and
A statement of claim specifying the relevant facts and
remedies requested.
The claimant may include any additional documents supporting the
statement of claim.
(2) A claimant may use the online claim notification and filing
procedure to complete part of the arbitration claim filing process
through the Internet. To commence this process, a claimant may complete
a Claim Information Form that can be accessed through [https://
www.nasd.com] https://www.finra.org. In completing the Claim Information
Form, the claimant may attach an electronic version of the statement of
claim, and any additional documents supporting the statement of claim,
to the form[, provided it does not exceed 50 pages]. Once this online
form has been
[[Page 6538]]
completed, [an NASD] a FINRA Dispute Resolution Tracking Form will be
generated and displayed for the claimant to reproduce as necessary. The
claimant shall then file with the Director the rest of the materials
required in subparagraph (1) of the rule, along with a hard copy of the
[NASD] FINRA Dispute Resolution Tracking Form.
(b)-(d) No change.
* * * * *
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, FINRA included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. FINRA has prepared summaries, set forth in sections A,
B, and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
FINRA is amending its Customer Code and Industry Code to remove the
50-page limit on Statements of Claim filed through the System, to allow
parties to submit exhibits to Statements of Claim through the System,
and to reflect the new FINRA name. The proposed rule change is intended
to encourage more claimants to use online filing. The System will not
have any limitation on the number of pages submitted so long as they
are submitted as a single document.
To begin an arbitration, a claimant submits a signed and dated
Uniform Submission Agreement, a Statement of Claim specifying the
relevant facts and remedies requested, any exhibits supporting the
Statement of Claim, and the required fees. When a claim is filed in
hard copy, the claimant is required to submit sufficient copies of the
Statement of Claim for the forum, each arbitrator and each other party.
Since August 2004, FINRA has allowed claimants to file an
electronic version of the Statement of Claim so long as the submission
does not exceed 50 pages. The Statement of Claim may include exhibits
if they are part of the same document and the total number of pages is
no more than 50. Claimants who file online also complete an online
Claim Information Form containing details about the names and addresses
of the parties and their counsel, the issues in controversy, and so
forth. Once the Claim Information Form is completed, a Dispute
Resolution Tracking Form is generated by the System. Claimants then
mail in a signed and dated Uniform Submission Agreement, a copy of the
Dispute Resolution Tracking Form, the required fees, and any exhibits.
The case is deemed to be filed when all such materials are received.
With electronically filed claims, FINRA staff prints the required
copies for the arbitrators and the other parties. The 50-page limit was
originally imposed to ensure that FINRA had sufficient resources to
process electronic claims efficiently. Having gained experience with
electronic filing, FINRA is prepared to process efficiently the
additional volume associated with longer Statements of Claim and
exhibits.
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of section 15A(b)(6) of the Act,\6\ which requires, among
other things, that FINRA rules must be designed to prevent fraudulent
and manipulative acts and practices, to promote just and equitable
principles of trade, and, in general, to protect investors and the
public interest. By removing the page limitation on submissions through
the System, the proposed rule change will provide investors, and other
claimants, with expanded access to the System and will make claim
processing more efficient.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
FINRA does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to section
19(b)(3)(A) of the Act \7\ and paragraph (f)(3) of Rule 19b-4
thereunder \8\ because it is concerned solely with the administration
of FINRA.\9\ At any time within 60 days of the filing of the proposed
rule change, the Commission may summarily abrogate such rule change if
it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(3).
\9\ The applicability of Rule 19b-4(f)(3) is limited to matters
concerned solely with the administration of a self-regulatory
organization. Because this narrowly tailored rule change is limited
to relaxing administrative restrictions on the length of documents
solely for claims processed online and updating FINRA's name and
Internet address for purposes of these claims, it meets the Rule
19b-4(f)(3) standard.
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-FINRA-2007-042 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-FINRA-2007-042. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for inspection
and copying in the Commission's Public Reference Room, 100 F Street,
NE., Washington,
[[Page 6539]]
DC 20549, on official business days between the hours of 10 a.m. and 3
p.m. Copies of such filing also will be available for inspection and
copying at the principal office of FINRA. All comments received will be
posted without change; the Commission does not edit personal
identifying information from submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-FINRA-2007-042 and should be submitted
on or before February 25, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-1960 Filed 2-1-08; 8:45 am]
BILLING CODE 8011-01-P
